Overcoming Fears of Discussing Pricing and Budgets with Clients
Many people say that discussing prices and budgets with their customers during in-person meetings or phone calls feels like an imposition on their client. They meet with the client, discuss the product and service that they sell, details about a possible project, but when they reach the point of discussing prices, they just can’t do it. Instead, they send a proposal or ask budgetary questions by email. They feel that the topic of money is off-limits.
If you have this off-limited attitude about discussing money, then you have a psychological barrier that can keep you from becoming a great salesperson. Read this post to learn possible reasons why you have this attitude and how you can overcome it.
What makes you afraid to discuss prices?
Why do so many people believe that discussing pricing is taboo? For most of you, the answer is simple: you secretly think that discussing prices demands the customer’s time without providing any actual value in return. It feels unreasonable, so you can’t justify holding the discussion. Others of you think that clients are so wowed by your product or service that they’ll take the initiative to contact you to discuss pricing and budget. Be prepared to wait a long time for that call or email. Still others of you feel that your price is unfair—that you overvalued your service or the customer doesn’t have the money to pay for it. If that’s the case, you need to ask yourself, “Don’t the various services that I pay for cost that much?”
In most cases, you’re probably offering your products or services for a lower price than you should. I say this from firsthand experience: When I started my first business in Canada, I lost numerous clients because I priced my services too low. For some reason, people think you are less capable, or your offerings are of lower quality when your prices are lower. When I did get customers at those low prices, I added up barely making any profit. That’s not the way to succeed in business.
As for customers not having the money, let them be the ones to decide whether they can afford your products or services. If you’re sure they don’t have the money, perhaps they’re not the ideal client.
Advice for discussing pricing
When it comes to pricing, follow this simple rule, and you’ll be more effective at selling your products and services: Stating the price in person is much better than doing so by phone, and stating the price over the phone is much better than doing so by email.
Also, those of you who have the irrational feeling that you are taking money out of someone’s pocket must overcome that feeling. You aren’t—it’s a fair exchange with which you both agree. You provide them value; they pay you money. Of course the value of what you offer should not be lower than the price. But if you firmly believe that the value is much higher, why should you feel awkward about stating the price?
So above all, figure out the value of your services and price accordingly. You have to know this to overcome your fear of discussing money with clients. And then boldly and confidently state your prices. It’s actually essential for business success, and like so many things in business, is always best done in person.
How do you feel about discussing money matters with clients? In the comments section, please share any experiences with and feelings about discussing money. In particular, I’d love to hear ways you’ve overcome any feelings of embarrassment or awkwardness to be able to confidently hold these discussions.
Categories: Business tips